Google AI Search Shows Product Prices 21.6% Higher
بحث غوغل بالذكاء الاصطناعي يعرض أسعارًا أعلى بـ 21.6% للمنتجات - وكالة عمون الاخبارية
A study found that Google's AI Mode shows the same products at prices 21.6% higher on average compared to traditional search. The primary seller for the same product differed nearly 50% of the time, suggesting AI Mode prioritizes different sellers and is less focused on low prices. Google stated that all shopping results, including AI Mode, use the same Shopping Graph data source.
- Company involved
- Google
- AI system involved
- AI Mode
1 source article · read the reporting →
Amazon's Algorithm Favours Its Own Products Over Cheaper Alternatives
ProPublica found that Amazon's buy box algorithm often selects Amazon's own products or those of sellers who pay for its services, even when cheaper options exist. This results in customers paying higher prices, with an average difference of $7.88 per product. Sellers who do not pay for Amazon's Fulfilled by Amazon programme are disadvantaged and may lose sales. Amazon states that the algorithm considers factors beyond price, such as shipping speed and customer service.
3 source articles · read the reporting →
3rd Circuit Revives Hotel Price-Fixing Suit Over Cendyn Rainmaker Algorithm
A group of hotel guests allege that Caesars Entertainment, Hard Rock, Borgata, and MGM conspired to fix room rates using Cendyn's Rainmaker algorithm. The algorithm allegedly recommended prices based on competitively-sensitive information shared among the casinos. The U.S. Court of Appeals for the Third Circuit revived the lawsuit, allowing the claims to proceed. The case is pending.
- Company involved
- Caesars Entertainment, Hard Rock, Borgata, MGM
- AI system involved
- Rainmaker
2 source articles · read the reporting →
Uber's Secretive 'Upfront Fares' Algorithm Cuts Driver Pay in Many Cities
Uber introduced an opaque algorithm called 'Upfront Fares' to calculate driver pay in 24 U.S. cities, replacing the previous time-and-distance-based rate. Drivers report lower and unpredictable earnings, with Uber taking a larger cut of fares. The company claims the change gives drivers more control, but critics say the secrecy makes it impossible to verify fair pay. The algorithm may learn the lowest rate drivers will accept, potentially driving down wages.
- Company involved
- Uber
- AI system involved
- Upfront Fares
3 source articles · read the reporting →
Algorithmic Pricing Glitch Causes $24 Million Book Listing on Amazon
Two booksellers on Amazon, profnath and bordeebook, used algorithmic pricing to automatically adjust their prices relative to each other. Due to a lack of upper price limits, their algorithms entered a feedback loop, driving the price of a used copy of 'The Making of a Fly' to over $23 million. The error was discovered by a researcher and the price was later manually corrected by one of the sellers. No purchase was made at the inflated price.
- Company involved
- profnath and bordeebook
- AI system involved
- Amazon algorithmic pricing
2 source articles · read the reporting →
Fullpath's Car Dealer Chatbot Goes Viral After Being Tricked into Silly Responses
Fullpath's ChatGPT-powered chatbot for car dealers went viral after users tricked it into generating silly responses, including a $1 car price and a Tesla recommendation. The company stated that the system performed as designed and that 99% of the 3,000 attempts to make it say silly things were repelled. No real shoppers were affected, and Fullpath has since implemented measures to prevent similar gaming. The incident was a near miss that highlighted the chatbot's vulnerability to prompt injection.
- Company involved
- Fullpath
- AI system involved
- Fullpath's ChatGPT chatbot
8 source articles · read the reporting →
Meta's Advantage Plus AI ad tool overspends and underperforms for advertisers
In February 2024, Meta's automated ad platform Advantage Plus began malfunctioning, causing advertisers' costs per impression to skyrocket and blowing through daily budgets without delivering sales. Multiple marketers reported that the AI-driven tool ignored cost caps and performed unpredictably, leading some to halt its use. Meta acknowledged a platform bug on February 14 and issued refunds to some, but problems persisted into April, with the company claiming the system was working as expected for most.
- Company involved
- Meta
- AI system involved
- Advantage Plus
1 source article · read the reporting →
Portland Water Bureau AI pilot offers discount to billionaire CEO
The Portland Water Bureau used a machine learning system in a randomised control trial to identify customers for its financial assistance programme. The system selected Columbia Sportswear CEO Tim Boyle, a billionaire and one of the city's largest residential water consumers, for a 40% water bill discount. Boyle declined the discount, stating it should go to someone who needs it. The bureau is testing whether the SERVUS algorithm can accurately identify customers' ability to pay.
- Company involved
- Portland Water Bureau
- AI system involved
- Smart Discount Program
1 source article · read the reporting →
Canada Investigates Landlords' Use of AI Rent-Setting Software YieldStar
The Competition Bureau of Canada is investigating allegations that major corporate landlords, including Dream Unlimited, used AI-powered software YieldStar to coordinate rent increases. Tenant advocacy groups filed over 100 complaints, claiming the software recommended above-market rents, exacerbating housing affordability. Some landlords have since halted use of YieldStar amid public backlash, while the investigation continues.
- Company involved
- Dream Unlimited
- AI system involved
- YieldStar
7 source articles · read the reporting →
DC attorney general sues 14 landlords over RealPage rent collusion
The Attorney General of Washington DC filed a lawsuit against 14 large landlords, alleging they used RealPage's YieldStar software to form “a District-wide housing cartel” that artificially inflated rents. The complaint claims RealPage's pricing algorithm used data supplied by the landlords and pressurised them to follow its rate recommendations, with one firm's internal presentation stating at least 95% compliance was expected. This alleged scheme caused residents to pay millions of dollars above fair market prices during a housing affordability crisis.
- Company involved
- Greystar Management Services
- AI system involved
- YieldStar
10 source articles · read the reporting →
Uber's pricing algorithm surged prices during London Bridge attack
On June 3, 2017, during a terrorist attack on London Bridge, Uber's dynamic pricing algorithm increased ride prices by over 200% for 43 minutes. Customers attempting to flee the area faced surge pricing. The algorithm automatically adjusted prices based on supply and demand without accounting for the emergency.
- Company involved
- Uber
7 source articles · read the reporting →
Booking.com still misleading consumers with false '1 room left' claims
Booking.com continues to display misleading scarcity messages on its hotel booking platform, claiming that only one room is left when in fact many more are available. Which? Travel found that five out of ten such claims were inaccurate, with one example showing 34 rooms still available at a London hotel. The Competition and Markets Authority had given Booking.com until 1 September 2019 to change its practices, but the platform has not fully complied. Booking.com says it has worked to implement the commitments agreed with the CMA.
- Company involved
- Booking.com
10 source articles · read the reporting →
RealPage's YieldStar algorithm pushes rents higher for tenants
RealPage's YieldStar algorithm uses private competitor data to recommend rent increases for apartment units. Landlords adopt up to 90% of the suggestions, leading to higher rents for tenants. Critics allege the software may facilitate indirect price-fixing in violation of antitrust law. The company denies wrongdoing and says the software helps eliminate collusion.
- Company involved
- RealPage
- AI system involved
- YieldStar
10 source articles · read the reporting →
UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego
A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.
- Company involved
- UDR, Inc.
- AI system involved
- RealPage YieldStar
1 source article · read the reporting →
Uber and Lyft pricing algorithms charge more in non-white areas
A study of over 100 million rides in Chicago between November 2018 and December 2019 found that Uber and Lyft's pricing algorithms charged higher fares per mile for trips to or from neighbourhoods with higher proportions of non-white residents. The researchers analysed trip data against census demographics and found no statistical link to higher demand in those areas. Both companies acknowledged the study and said they would review the findings, but no changes have been reported.
- Company involved
- Uber
- AI system involved
- Uber pricing algorithm
10 source articles · read the reporting →
Shipt's new V2 algorithm reduces pay for 41% of workers, study finds
A study by MIT Media Lab and Coworker.org found that Shipt's new V2 payment algorithm reduced pay for 41% of workers by an average of 11% per shop. The algorithm, rolled out in September 2020, replaced a transparent payment system with a black-box model. Workers pooled data to analyze the impact, revealing uneven distribution of earnings.
- Company involved
- Shipt
- AI system involved
- V2
10 source articles · read the reporting →
Airbnb smart-pricing algorithm increased racial revenue gap, study finds
A study by Carnegie Mellon University found that Airbnb's smart-pricing algorithm increased the revenue gap between White and Black hosts, even though it narrowed the gap among hosts who adopted it. The algorithm, which sets daily prices automatically, was adopted by fewer Black hosts, so its suggested prices were closer to the optimum for White hosts. The researchers said the tool could reduce racial disparities only if more Black hosts adopted it.
- Company involved
- Airbnb
- AI system involved
- Airbnb smart-pricing algorithm
10 source articles · read the reporting →
Amazon sellers lose thousands after RepricerExpress pricing glitch
A software glitch in RepricerExpress's automated repricing system caused products sold by Amazon sellers to be priced at 1p, leading to significant financial losses for the sellers. RepricerExpress apologised but did not offer compensation, while Amazon said it had reached out to affected sellers but many reported no response. Some sellers have instructed lawyers to take legal action against RepricerExpress and Amazon.
- Company involved
- RepricerExpress
- AI system involved
- RepricerExpress
10 source articles · read the reporting →
Bruce Springsteen addresses Ticketmaster dynamic pricing outrage
Bruce Springsteen addressed fan outrage over Ticketmaster's dynamic pricing for his 2023 tour, which led to ticket prices skyrocketing up to $5,000. Springsteen said he told his team to do what other artists do and that most tickets were affordable. He offered refunds to fans who complained.
- Company involved
- Ticketmaster
- AI system involved
- Ticketmaster dynamic pricing
9 source articles · read the reporting →
Presto Automation uses off-site human agents to double-check AI drive-thru orders
Presto Automation Inc, which markets an AI voice assistant for drive-thru ordering, used off-site human agents in countries including the Philippines to double-check orders in more than 70% of customer interactions, according to SEC filings reported by Bloomberg. The company told Bloomberg that the process helps train its system and should reduce human intervention over time. Presto's drive-thru AI is used in more than 400 restaurants, including Del Taco, Carl's Jr and Checkers, and its stock fell more than 10% after the reports.
- Company involved
- Presto Automation Inc.
8 source articles · read the reporting →
Uber and Amazon algorithms pay different wages for same work
A study by law professor Veena Dubal alleges that Uber and Amazon use AI algorithms to offer different pay rates to gig workers doing identical work. The algorithms are said to calculate the lowest wage a driver will accept based on personal data. Uber denies tailoring individual fares, and the California Labor Commission's lawsuit against Uber and Lyft is ongoing.
- Company involved
- Uber
10 source articles · read the reporting →
Uber surge pricing capped by NSW government after commuters overcharged during rail shutdown
During a city rail network shutdown in March 2023, Uber's surge pricing algorithm charged commuters hundreds of dollars above normal fares. One passenger was charged $500 for a trip from Sydney to Mount Annan that usually costs $40. Uber apologized and reimbursed affected customers. The NSW government then made an agreement with Uber to cap surge pricing during public transport disruptions.
- Company involved
- Uber
- AI system involved
- Uber surge pricing
6 source articles · read the reporting →
Uber users angry over New Year's Eve surge pricing in Australia
Uber's dynamic pricing algorithm increased fares by up to 800% on New Year's Eve in Australia, leaving some users with bills hundreds of dollars above normal. Skye Shanahan was charged $720 for a trip that usually costs $100, and Kris Keen paid $330 for a $40 ride. Uber defended the surge pricing, saying it encourages more drivers, and offered $180 credit to Shanahan.
- Company involved
- Uber
- AI system involved
- surge pricing
10 source articles · read the reporting →
Delta uses AI from Fetcherr for domestic ticket pricing
Delta Air Lines is using generative AI from Fetcherr to determine some domestic flight prices, currently covering 3% of its network with plans to reach 20% by end of 2025. Democratic senators expressed concern that the AI could be used for individualized pricing based on personal data, leading to higher fares. Delta denies using personal data in pricing and states it complies with regulations. No actual harm has been reported.
- Company involved
- Delta Air Lines
- AI system involved
- Fetcherr
8 source articles · read the reporting →
